Are you feeling optimistic?
If you are a SME business owner then, according to the latest research by Yell, it’s likely that you are feeling optimistic as we begin 2021. In fact, as many as 71% of SME owners are reporting optimism around the future success of their business. Qualifying further, many small business owners are enthusiastic about their ability to bounce back beyond pre-covid levels.
So what’s driving this optimism? At a macro level, many businesses have demonstrated that they have resilient business models. What’s more, as they learned to pivot into new products and markets, they uncovered new revenue streams. Broader still, the Covid-19 vaccine is beginning to roll out, and, for better or worse, a conclusion to Brexit trade discussions will begin to provide surety and enable planning.
At a more granular level, 2020 forced many organisations to review their operations and improve the overall customer experience. One example of this is an overhaul of customer communications and the emergence of instant messaging services. Platforms such as Facebook Messenger and WhatsApp became vital tools and are now prevalent for many SMEs. These tools are being used to help foster long term customer relationships as well as generate sales. As many as 40% of SMEs reported they’ve seen enquiries increase as a result of such tools and 53% believe this format of communication will be key for business success post Covid-19.
Striking the right balance
So bring on 2021? Yes, but a note of caution must be factored into this confidence and subsequent business planning. It’s a sad fact that many staff were let go during 2020. The latest ONS statistics reveal that UK unemployment is approaching 5% – a 20% increase from this time last year. Departments such as marketing and operations, which can be perceived as cost centres in a time of cuts, were particularly impacted.
It is against this backdrop that many SME business owners must now perform a balancing act. With optimism abound, the natural tendency will be to focus on pursuing emerging sales possibilities. However in order to fully capitalise, it will be vital to rebuild staffing levels. This requirement brings significant costs – both monetary and time. Striking the balance is a tough ask, particularly as permanent employees bring a raft of fixed costs which many businesses may not yet be ready to lock themselves into.
One option is to avoid taking action to reverse staffing cuts. However this stunts business growth as opportunities will be missed. What’s more, pressure is continuing to build for when staff are eventually recruited. This is particularly true In areas such as marketing which may require a reset of strategy but there is a need to create results immediately.
Flexible solutions will be key
So is there a solution that allows you to walk this tightrope, exploiting new opportunities and simultaneously addressing staffing issues in your business? The answer is that interim flexible solutions come in a range of forms. These will vary in suitability to complement different areas of your business. Options include:
- Temporary staff
- Fixed term contractors (FTC)
- Outsourcing
- Consultancy
There are pros and cons to each of these options and it is worth reviewing department by department. For instance, it may make sense to bring temporary staff or FTC in to work within an operational area of your business. This solution allows you to flexibly upscale a team whose work typically depends on well established processes.
Outsourcing an area such as telemarketing or advertising can be a great solution. This enables you to offload work that is outside the core skills of your business – but crucially retain flexibility around contract length and complete control over costs.
A consultant can bring in expertise at a more strategic level which will help you to; audit, steer and develop your business. This sort of work may be suitable to fill a senior management gap created by a redundancy. An example might be a Head of Marketing who you are not yet able to replace on a permanent basis.
Looking forwards
2020 is a year that many will be glad is now over, but the signs are positive – if still a little hazy – for 2021. Opportunities will be there for those who are able to strike a balance between seizing the moment and not over committing as they rebuild. If you feel that marketing consultancy or outsourcing services may potentially fill a gap in your business then please get in touch – it might be the perfect start to the next chapter in your business.
PS – For the record, here at Change Lanes we count ourselves in the 71% feeling optimistic.